Daily Strategy for Investors on September 18, 2020

Asia Wealth Securities (AWS) released an analysis for the trading session on September 18, 2020, indicating the essential events in the stock market as follows: 

 

Investment Ideas:

The overall investment today – AWS expects the SET today (18 Sep) to remain volatile due to the negative sentiment from the outcome of yesterday’s FOMC meeting (17 Sep). A statement by the Fed chair who believed the direction of the economy remains highly uncertain. While the unemployment rate remains high, considering the lower labor force participation rates, as well as the BoJ and BoE central bank meetings, there were no new stimulus measures, coupled with concerns about the domestic political situation to have a big rally on 19 Sep. AWS investment strategy remains the same. 

AWS recommends short-term speculation on stocks with positive factors including the issue of rising oil prices, speculation is recommended as AWS chooses PTT, PTTEP and PTTGC, while medium to long term, AWS recommends gradually accumulating stocks of Dividend and DCA based on our investment theme.

Crude oil price increased after OPEC+ meeting, weight for speculation – OPEC+ market observer committees jointly agreed to implement a production cut agreement. There was no change at the meeting to cut output of 7.7 million barrels per day from August to the end of 2020. 

According to the U.S. Energy Information Administration (EIA), U.S. crude reserves fell 4.4 million barrels last week. (Ending 11 Sep) more than expected. AWS weighs this issue as speculation, choosing PTT, PTTEP and PTTGC as our top picks.

 

Theme Investment

1) Benefit from a successful vaccine development in the near future (Short term trading 1 month) – AOT, AAV, BA, ERW, M, CENTEL and MINT

2) Benefit according to the season (Short term trading 1-2 months) – BGRIM, CKP and GPSC

3) Benefit from the stimulus package (Short term trading 1-3 months) – CPALL, CRC, HMPRO, BJC, OSP, CBG, MTC, CK, BEM, SEAFCO, PYLON, TASCO, COM7 and WHA

4) Dividend Play (Middle term investing 6-12 months) – KKP, TISCO, QH, LH, ORI, NOBLE, DIF, INTUCH, HANA, EASTW, TTW, EGCO and RATCH

5) Long-term cumulative shares (DCA) (Investing more than 1 year) – ADVANC, AOT, BDMS, BEM, CPALL, DIF and PTT